Understanding Amazon's Pay by Invoice Program: What Sellers Need to Know About B2B Payment Terms
Amazon's Pay by Invoice program lets verified business customers defer payment on purchases. Amazon manages invoicing, sets payment terms, bears non-payment risk, and guarantees seller payment within 15 days of the invoice due date.
Overview
Amazon's Pay by Invoice program allows eligible business customers to defer payment on their purchases, receiving an invoice with extended payment terms instead of paying at checkout. This Business-to-Business (B2B) feature is designed to facilitate larger orders from verified corporate buyers, and it carries specific policies that every Amazon seller should understand — particularly around invoicing, payment timelines, and who bears the risk of non-payment.
Key Points / What Sellers Need to Know
- Automatic enrollment — Sellers do not need to register separately for Pay by Invoice. Your entire product catalog is automatically available for purchase under this program once Amazon enables it for eligible customers.
- Amazon controls eligibility — Amazon decides which customers qualify for Pay by Invoice at its sole discretion, including running credit assessments and verification before granting access.
- Payment terms are set by Amazon — The payment window extended to each business customer is determined entirely by Amazon. Sellers agree to honor whatever term Amazon assigns to a given order.
- Amazon bears non-payment risk — If a customer fails to pay their invoice, Amazon absorbs the financial risk and guarantees payment to the seller within 15 days of the invoice due date.
- No direct collection by sellers — Sellers are prohibited from contacting customers to collect payment or conducting any collection activity. Amazon handles the entire collections process.
- Invoicing restrictions apply — Sellers must not issue their own payment requests or attempt to redirect payments outside of Amazon's system.
How the Program Works
When a verified business customer places an order using Pay by Invoice, Amazon generates a payment request on the seller's behalf. This payment request includes the specific payment term — often 30, 60, or 90 days — that Amazon has assigned to that particular customer. The seller's role is straightforward: fulfill the order as usual and let Amazon manage the billing cycle. The customer receives an invoice from Amazon with clear payment instructions and a due date, and the seller does not need to take any additional invoicing steps through the standard process.
Analysis & Recommendations
Why This Matters
Pay by Invoice opens sellers to larger B2B orders from credit-verified business customers. Amazon absorbs non-payment risk and guarantees settlement, but sellers must follow strict invoicing and communication rules to stay compliant.
Key Takeaways
- Your entire catalog is automatically enrolled — no separate registration required
- Amazon sets payment terms and bears all non-payment risk, guaranteeing seller payment within 15 days of the invoice due date
- Sellers must never contact customers directly for payment or issue competing invoices
- VAT invoice requests must be honored promptly but must not include payment redirection instructions
Recommended Actions
- →Review whether you're enrolled in Amazon's VAT Calculation Service to streamline VAT invoicing for B2B orders
- →Ensure your team knows not to contact Pay by Invoice customers directly about payment or collections
- →Monitor your B2B sales metrics to understand how Pay by Invoice impacts your order volume and average order value
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